“We see BIMA Sugam as an efficient consumer-facing platform, which is getting ready and at the back-end are the insurance companies. They have made a beginning as their products and services should be coming in the market in the next few quarters.”Ajay Seth, chairman, IRDAI
Hyderabad: Ajay Seth, chairman, IRDAI, has hinted that the insurance regulator is currently working on key distribution reforms in the sector.
“Distribution reform, to my mind is all about affordability and expanding the reach of the insurance market. We have to make the products much more affordable, more efficient and more attractive for the the people. Most of the growth is now coming from tier-2 and tier-3 cities, but affordability has not yet entered the conversation.That is where we are moving forward. No shocks, but status quo is also not an answer,” said Seth, while participating in business daily Business Standard’s BFSI Insight Summit 2025, on Thursday, in Mumbai.
“From the regulator’s side, the question is how we can economise our cost. We have to go from a high-cost structure to a moderate-cost structure, with good service. Based on data, analysis, and the perspectives I hear, I reach a conclusion. But nothing is done without extensive consultation, generating discussion, and building consensus,” Seth stated.
Next to distribution reforms, IRDAI, will focus on the use of the DPI(Digital Public Infrastructure) by the insurance secor, added Seth.
“ The big piece next to distribution reform is digital public infrastructure.We have not really made even a beginning on that, or we are just making a beginning,” Seth stressed.
On Bima Sugam, Seth clarified,“We see BIMA Sugam as an efficient consumer-facing efficient platform, which is getting ready and at the back-end are the insurance companies. They have made a beginning as their products and services should be coming in the market in the next few quarters.”
Platforms like Bima Sugam and the Insurance Information Bureau (IIB) will enhance efficiency and consumer access, Seth added.
Seth also highlighted about IRDAI’s plan for the risk-based supervision framework for the industry.
“We have to spend a lot more time on the issue and I would like to have that conversation with the sector. Risk-based supervision framework requires a much more solid, robust corporate governance.That conversation should happen within the insurance industry,” he said.